Kimco Realty Corp. just announced it has bought out its partner on two Broward properties, including a huge mixed-use development, for a whopping $299.2 million.
The real estate investment trust has now taken full ownership of Oakwood Plaza, a fully leased 900,000-square-foot shopping plaza at 3800 Oakwood Boulevard, and Dania Pointe, a 102-acre mixed-use development project expected to break ground by the end of this year.
The seller is the Canada Pension Plan Investment Board, a massive financial firm that manages pensions on behalf of 18 million Canadians. CPP owned a 45 percent stake in both properties before selling.
According to the announcement, Kimco’s gross purchase price for the Oakwood shopping center, which boasts tenants like Marshalls and Regal Cinemas, was $215 million including the assumption of a $100 million mortgage.
Aerial view of Oakwood Plaza
The remaining $84.2 million went to Dania Pointe, a massive mixed-use project south of the Fort Lauderdale International Airport along I-95. Plans include 900,000 square feet of commercial space, 1,000 apartments, two hotels with a combined 300 rooms and two office towers. The first phase is expected to break ground in the fall, with phase two starting construction by the end of 2017.
When completed, the property is expected to have the highest net operating income out of Kimco’s entire portfolio.
This purchase is part of Kimco’s ongoing plan to reduce its number of joint ventures. The company has also been selling off its Canadian assets to make an all-in play to buy up U.S. retail properties, according to the announcement. During the first quarter of 2016, Kimco sold its interests in seven Canadian shopping centers for $322.9 million. — Sean Stewart-Muniz